Will takes longer time to include real estate in GST: Sushil Modi

Kolkata - Bihar Deputy Chief Minister and GST Council member Sushil Modi said the inclusion of real estate in Goods and Services Tax (GST) would take "much longer time" as it is "not that easy" though the council is slated to discuss about it in the next meeting.

"It is up to GST Council to decide. But I think it will take much longer time and it is not that easy. Let other things stabilise in the GST, then petroleum products and real estate," he said, to a query about the possible timing on the inclusion of real estate in the GST ambit, at the India Today Conclave East here.

Modi, who is also Bihar's Finance Minister, said GST Council would discuss about the real estate issues in the next meeting. In real estate, state levies such as stamp duty, registration charges, and property tax, which is a municipal levy, are currently outside the ambit of GST.

He said every state Finance Minister is concerned to protect their state revenue and the centre assured protection up to 14% of revenue.

After the GST council's Guwahati meeting in which the GST rates of 178 items were reduced from 28%, the GST is stabilising, Modi said.

Refuting the argument that the decision of pruning the number of items from higher bracket of GST rate to lower rates was taken in view of Gujarat assembly elections, he said: "88% of small business in Bihar fall below Rs 1.5 crore (annual turnover). It is not the case for Gujarat."

"In the earlier regime, the small businesses with below Rs 1.5 crore (annual turnover) were exempted from excise duty. Most of the small businesses were below less than Rs 1.5 crore cap. Now, all of them came to net of GST."

On the hardships that the businesses have been facing in filing GST returns, he said, it would take some time to settle in the new indirect tax regime. "Earlier in the VAT (Value Added Tax) system, 40% was online based and the rest was done manually. The GST is end-to-end automation.

In terms of compliance, the system would be simplified and in the coming two-three months, the GST compliance system would be less complicated and it would be easier for small businesses.

The issues related to GST rates on items have been resolved by more than 80 per cent and very few issues are yet to be resolved regarding the tax rates, he said.

Tag Cloud

Tags

About Us

The Finapolis helps you grow your money. We offer insightful journalism, credible research and actionable advice suitable to every Indian taxpayer, making us a one stop destination for your personal finance needs.

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.